London Borough of Wandsworth Pension Fund issued RFIs for managers to run up to a combined £600 million ($1.2 billion) in four separate portfolios, confirmed Peter Harris, pension fund manager of the £640 million fund. The managers would be running almost all of the funds assets, except for real estate. The RFIs are for managers to run £200 million to £300 million in a passive multiasset strategy; £100 million to £150 million in active global equities; £100 million to £150 million in active U.K. bonds; and £75 million to £150 million in active U.K. equities. At least one manager is being sought for each portfolio. Funding will come from terminating an active balanced strategy totaling about £600 million split between UBS Global and Aberdeen, Mr. Harris said. The reason for the restructuring was to move away from the discretionary balanced approach. UBS and Aberdeen can rebid. The rest of the plan is in real estate investments split between UBS and RREEF Alternative Investments, Mr. Harris said. Proposals are due Aug. 22. Further information can be obtained from consultant Mercer or the funds website at http://www.wandsworth.gov.uk.
U.K. fund seeking managers for nearly all its £640 million
Fonds de Reserve pour les Retraites, Paris, issued an RFP for an extra-financial risk analysis provider, according to the €31.1 billion ($49 billion) funds website. The analyst will be in charge of identifying serious and unacceptable risks due to breaches in the universally accepted principles by listed companies, according to the website. The RFP can be found at http://www.achatpublic.com/accueil/frr/medias/
index.php. Proposals are due at 4 p.m. Central European Time on Sept. 15. Further information was not immediately available.
Illinois State Board of Investment, Chicago, is searching for an active international small-cap equity manager to run $250 million, said William R. Atwood, executive director of the $11.6 billion system. The search is part of an effort to raise the funds international allocation to 20% from 10% of total assets. Funding would come from reducing domestic equity, he said; no managers would be terminated. The RFP is available from Brian Wrubel, managing director at consultant Marquette Associates, which is assisting in the search. A deadline for submissions has not been set. The board could make a decision on hiring at its Sept. 26 meeting.
CalSTRS issued an RFP for a pension accounting consultant, a first for the $162.2 billion system, according to spokesman Ricardo Duran. The California State Teachers Retirement System, Sacramento, is looking for a consultant team to research, design and implement a best-practice model for pension accounting and to provide CalSTRS employees transition support and training in its operation, according to a news release. The contract period is up to 2.5 years with the option of a one-year extension. The RFP is available at www.calstrs.com/rfp. No selection date has been set.
Stichting Pensioenfonds ABP, Heerlen, Netherlands, is considering an increase in investments with inflation-hedging characteristics such as commodities, infrastructure and real estate, confirmed spokesman Thijs Steger. The move might be funded by reducing the €205 billion ($325 billion) funds fixed-income portfolio, although Mr. Steger declined to specify. Any changes will be finalized in ABPs strategic investment plan for 2010-2012, scheduled to be completed at the end of the year, Mr. Steger added. About 7% of total assets is invested in inflation-linked bonds, 10% allocated to government bonds and 23% invested in corporate bonds. In an interview earlier this year, Roderick Munsters, CIO at APG Groep, which manages ABPs assets, said the portfolio may need to shift toward investments with strong inflation-hedging characteristics because he is concerned that the global economy is entering a phase of higher inflation.
Orange County Employees Retirement System, Santa Ana, Calif., plans to conduct an asset-liability study later this year, said Shanta Chary, CIO. Officials at the $7.7 billion system have no exact date for the study. Separately, consultant Callan Associates will be overseeing a search for two managers to run a new $300 million global equity portfolio for the system, Ms. Chary said. Callan will create a shortlist of managers and no RFP is planned, but firms interested in running the portfolio can contact Callan. Funding will come from trimming a $2.6 billion Russell 1000 index
fund managed by BGI and a combined $3.98 billion active international equity portfolio run by Capital Guardian, AQR Capital Management and Mercator. Specific changes were not known.